gregs? >> eric: >> bob: twice as much to say. >> eric: going on a bus tour? >> eric: that is it for "the five." thanks for watching. >> bret: ultimatum from the president on the fiscal cliff. this is "special report." ♪ ♪ >> bret: democrats and republicans agree on some things about the approaching budget deadline. both agree the other proposals are ridiculous and it's time for the other side to get serious. that is about it. today the president side

seemed to dig in instead of give in. >> this is fairy dust. >> they blasted the debt proposal and vowed unless republicans give in on the tax rates, president obama let the nation fall off the fiscal cliff. >> republicans need to acknowledge reality here. rates have to go up. earlier in the presidency, obama warneded it could hurt the economy. >> the nation is no longer in recession. and american manufacturing contracted in november for the first time in three months. the president is concerned enough that he proposed tens of billions in new stimulus spending in the debt talks. >> what is the justification for raising taxes? >> the fact of the matter is that it's vitally important

that we extent and the president's view make permanent tax cuts for 98% of the american people. >> the president would like to see it done tomorrow and would sign it right away. >> they will put for ending deduction and closing loopholes. >> republicans move a great deal. who was the first person after the election was the speaker who went down and provided the re-knew. >> they blasted the proposal to limit deductions to tell bloomberg television it's unrealistic. >> that means every hospital and university and non-for profit, the agency. across the country would find themselves on the verge of collapse. >> they had a different view when he proposed to limit not

eliminate charitable deduction for wealthy to pay for healthcare reform. >> there is very little evidence that has impact on the charitable giving. >> he continues to make the case. they have anchors an pundit, a visit from the primetime line-up, including rachel maddow, ed shorts and adrianna huffington. they talk about the importance of preserving the middle class tax cut. >> bret: not every democrat on board with president obama proposal. emanuel has that story. >> democrats won't agree to it. obama wouldn't sign a bill. >> they blast the house republican plan it's not likely that president obama will get to sign his own fiscal cliff plan since the republicans and democrats don't like it.

the measure was defeated 99-nothing. west virginia senator says that both sides aren't going far enough when it comes to cuts. >> they are lower than what everyone says we need. all economists say we need minimum of $4 trillion or greater swing. >> i don't know how we got off-track of what we need to fix this. >> it will be tough for the 20 senate democrats facing re-election. such as begoch and maryland land and mark pryor from conservative states. the top republicans say the president's span not serious. >> comes out with a proposal to raise taxes by $1.6 trillion. has unlimited authority to borrow more money.

>> chuck schumer says he prefers to set the bar at $1 million. they have smart cuts to ask the millionaires to pay their fair shares. $60% of americans want millionaires to pay more. >> democrats hope this addres addresses the estate tax. increase it from 35% to 40 packet and lower protected to $5 million. framly farms or ranchs and that could be hefty tax bill. >> bret: mike emanuel on the hill. good news for people trying to sell the homes. prices were up 6.3% in october from a year earlier. that is the largest yearly gain since july of 2006. the dow lost 14, though, today. the s&p 500 dropped 2. nasdaq off 5.5. new warning for syria. this is warning from nato.

new tragedy as they become victims of the bloody conflict. chief washington correspondent is at the state department now. >> it purported to show syrian war plane conducting bombing mission. mortar round struck a high school and reportedly killed a teacher and student. it's escalated to intensity. >> the side suffered military setbacks. the picture beginning to emerge in syria is this may be close to the end of the regime. >> in bruce sells, the foreign minister of the nato alliance with the approval of the turkey request. to be installed. the hundreds of troops are

expected to ratify the deal shortly. it will be under nato foreign minister that is defensive only. it will no way support a fly zone or offensive operation. >> we know syria possesses missiles. we know they have the chemical weapons. of course they have to be included in our calculations. >> follow the father's death 12 years ago. rebel forces for killing of 40,000 country man toward the capital. >> the fact he is mixing the precursor of reportedly, really scare tactic for us. to keep us out of it. also, warning to the people of syria? washington, the officials appear confident that the top

syrian officials heard warnings of dire consequences if they use the chemical weapons. >> it's not aware of the seriousness of the president's position on this. >> policy makers here prepare for the eventual collapse of the assad regime, they confirm the pentagon is estimated it will take 75,000 troops to secure syria's chemical weapon facilities. it's not clear whether the obama administration would call on u.s. troops to do that or try to outsource the job to jordan or another mideast alley. >> the senate passed defense spending bill. it moves on to a conference committee to reconcile with the house version. it includes amendment from the senator john mccain to require a report on possible military action that could be used in syria. are famous people who want to take away your gun rights hypocrites? that is later in the grapevine. up next, riot guns and tear gas in cairo.

egypt rises up against the president again. um...

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>> bret: unestimate today had 100,000 egyptians taking to the streets this afternoon to show their outrage over a perceived power grab by the president. correspondent steve harrigan is in the capital where it is this morning. hello, again, steve. >> what we have been seeing is escalation by the opposition protesters. instead of sitting here in tahrir square, the protesters were on the move tonight to march from several different directions toward the palace. they cut through the barbed wire. thousands remain. they were inside the compound

in the post. left while it was going on. aids said it was the end of a working day. mr. morsi did not flee. he does not live inside the compound. [ inaudible ] next up for the country is a referendum december 15. the nation will vote on a constitution, the draft of which has been bitterly criticized like something that was rushed through and favors islamist parties. it's likely that morsi supporters from the muslim brotherhood will push hard to get out a yes vote and get out the vote in general. it's not clear at this point whether the opposition will vote nowhere no. or abstain. president morsi got a boost today. he has been battling with the judges. today, supreme judiciary council said they would oversee the referendum. this gives a new constitution air of legitimacy and a blow for the opposition. bret, back to you. >> bret: steve harrigan live in cairo. steve, thank you.

iran says it has captured another u.s. drone. iranian tv showed an image that said was aircraft that entered the air space over the persian gulf. both the u.s. navy and c.i.a. insist it's not one of theirs. other countries in the region do use the same type of drone. >> bret: you know what they say about too many cooks in the kitchen. we have new information tonight about the circuitous path of vital information immediately following the terror attack on the u.s. mission in benghazi almost three months ago. chief intelligence correspondent catherine herridge with a roadmap. >> the 94-port intelligence memo known as the c.i.a. talking points was reviewed by two dozen officials in 24-hour period before ambassador rice used them as the basis for the controversial sunday show appearances where she wrongly blamed the consulate attack on anti-islam video. >> they were dumbed down to the point that they were, we should have said nothing versus what they were trying to tell the american people.

taking al-qaeda references out of the talking points was an injustice to what happened. >> the substantive changes including the decision to pull references to al-qaeda were made by the u.s. intelligence community specifically the c.i.a. citing the need to protect sources and meths there. may have been legitimate reasons they find this puzzling. >> any attack happen against any american interest around the world, the first thing comes to even's mind is maybe al-qaeda. >> they are seeking e-mail traffic to independently assess how the talking points changed and whether it was driven by political considerations. fox news is told it took a week to ten days for intelligence showing there was no demonstration to the get to the f.b.i. and c.i.a. analyst. >> was there a problem between the communication with the f.b.i. doing the investigation, c.i.a. doing some of the intelligence analysis, state department responsible for the security. problem of a different kind? >> today, president obama

resisted suggestion he was cornered on a potential rights nomination. i'll make sure that we have a full national security team. that can give me the best advice possible. do everything they can to keep the american people safe. susan rice has done a great job as u.n. ambassador but i haven't made a decision about secretary of state. >> tomorrow on capitol hill, second round of closed classified briefings will be held for members of the house. testimony from the nation top intelligence officer among others. aside from the c.i.a. talking points, lawmakers say they want more definitive information on the level of premedication by the terrorists and how early it was known. bret? >> bret: thank you. still ahead -- what is the big hold up for obamacare? first, president george w. bush on the piece of the economic recovery. it might surprise you. side is frightful ♪ ♪ but the fire is so delightful ♪ nothing melts away the cold like a hot, delicious bowl of chicken noodle soup from campbell's.

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three, two one. take a look at the lighting of a capitol christmas tree an hour ago. 73-foot spruce. decorated with 5,000 ornaments. that's the spot where the inauguration will take place next month. beautiful. republicans trying to come up with a party's game plan when it comes to hispanics got star power to help today. former president george w. bush said the immigrants are key to economic recovery. we have the story from dallas. >> democrats increase growth. they are our friends if we want future job. >> 43rd president of the united states. >> the former president bush was helping spread at a conference today in dallas. >> bret: immigrants come with new skills and new ideas.

they fill a critical gap in the labor market. >> the president institute ruled out 4% growth prospect, to highlight how immigrants positively impact business. >> we believe that the economy can grow. and 4% a year. >> the reason is simple. u.s. census data shows that immigrants make up 16% of the total u.s. workforce and they own more small businesses than u.s. natives. >> i'm thankful and grateful i live in a country to embrace entrepreneurship and allows people to achieve the american dream. >> nina is a success story. she employs 4,000 people and as a child she immigrated to the u.s. from eck qua dore. >> impact the latinos have in this country is indisputable. >> political front, the la toy

know republicans are calling -- latino republicans are calling for outreach with obama's overwhelming victory among hispanic voters. >> the republicans need to remain a party that supports securing the border and stopping illegal immigration. at the same time welcome and celebrate legal immigrants. >> they are looking to the party like cruz or rubio in florida to champion can cause and win over the valuable part of the electorate. bret? >> bret: casey stegall in dallas. do you think republicans can win the hispanic vote? let me know on twitter. the supreme court says the government is on the hook for damage it causes to land it does not own. shannon bream has more on a big decision. good evening. >> under the fifthfield the u.s. constitution the federal government can't take your property without providing

just compensation. for years the state of arkansas argued the federal government did that. today, the state got a big win at the supreme court. the dispute started here at the clear water damn where the army corps of engineer conducted a system to control the flow of the black river. in the mid-1990s they began to release it to the dam. it rendered the land owned by the commission virtually us useless. the federal government argued that the floods were temporary they couldn't viewed as a taking. permanent possession of the property could trigger any liability. an attorney who filed a brief in arkansas said it boiled down to this. >> we could have the consequences saying it doesn't matter and to the side. if your property is effected, if your property is destroyed

or devalued. tough luck. we have don't own you anything. >> justice is not convinced. unanimous opinion offered today, the court held that because the government induced flooding can constitute taking of property, the precedent indicates that the government induced flooding of limited duration may be compensable. arkansas awarded 6 million by the trial court. appeals court overturned that award and it appears that the federal government is likely to have to pay up. >> thank you. >> bret: an embarrassing gaffe, well, this is pretty embarrassing. we'll explain. reaction to the reaction to last weekend's n.f.l. tragedy. the grapevine is next.

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our employees and their families are part of the fight. and we're winning. at chevron nigeria, we haven't had a reported case in 12ears. aids is strong. aids is strong. but we are stronger. and aids... ♪ aids is going to lose. aids is going to lose. ♪ >> bret: now fresh pickings from the political grapevine. flurry of reaction and follow township the controversial comments by sports commentators over last weekend's murder-suicide involving kansas city cheer player jovan belcher and his girlfriend. he said --

>> bret: others see hypocrisy in the gun control monologue. the site notes that costas lives much of his life with the benefit of armed security. men with guns. the author writes when they went on the rant against guns he showed himself to be a hypocrite of the highest orde order. he joined other numerous elitists who live by the standard of do as i say, not as i do. belcher's grieving teammates refuse to blame guns for tragic event. the new york daily news say a pair of players one schaefering thanksgiving dinner with belcher who insists the protection of guns is necessary and most people own them.

they called it a mistake saying that my mistake is i left it for too much communication in the short segment. rather than properly discussing the football culture the gun culture and domestic violence. costas says he does not favor appeal of the second amendment. >> bret: it's been a month since the campaign ended but vice president asheel ghafoor js gaffes are continuing. he sent congratulatory letter to eric boudenweiser republican state senate candidate in delaware. but budenwebeiser withdrew after being charged with felony counts for raining a boy for a decade. the form letter began, "congratulations on your recent victory in our great state of delaware." in a local report that mentioned the story, the situation is described as somewhat embarrassing. the result of vice president

not being awareed of the confusion, surrounding the write-in candidate that won. the vice president office said, "we regret the error." the state regulators spent month waiting for word from the federal government about the insurance exchanges at the heart of obamacare. tonight, chief national correspondent jim angle reports a major bottleneck that could send the healthcare law to the supreme court. >> that have states have been reluctant how to comply with the healthcare law. 17 flatly rejected the idea of a state run exchange. >> it is a federal law. so we will let the federal government do their thing. do what they'll do in oklahoma. >> it's not politics. it's the and the question of state control over an issue that is important to citizens of the states. >> given a skeptical opinion poll, the governors have

little indication to say no. >> it's not political for a lot of governors to say you know what? this is an untested program. it's legitimate option for me to let the government run it. >> some say in the chaos of writing or pass obamacare they did not provide money for washington to implement exchanges itself or give out federal taxpayer subsidies in them. >> if the state doesn't have a state exchange and they have a exchange there may not be subsidy. >> if they run exchanges in lot of states they will need a new appropriation. it will need money. that will come from the house of representatives and they will meet resistance there. >> one governor says that washington moves the deadline back. hoping the states will say yes. >> they want a state based exchange to run it.

i don't think they are confident they can or have the money to do it. >> the treasury department told fox news we are confident interpreting this provision to provide tax credits to individuals in every state is supported by the statute to interpret it. >> it's litigated and one of those things that decided at the supreme court level. >> critics argue it's anything but clear. federal officials acknowledge they weren't sure where the funds would come from. one more question mark long before the exchange start in 2014. >> some republicans in the senate led drive to reject the united states treaty on the right of disabled to say it threatened the sovereignty. that included former senator bob dole and wife elizabeth. dole was disabled in world war

ii. the 89-year-old republican was hospitalized but came to the senate today to push for the treaty. colorado michael bennett will be the chairman of the democratic senatorial campaign committee for 2014 election cycle. they have asked debbie waserman schultz to stay on as chairperson. that announcement came this week. republicans and democrats are fighting about the fiscal cliff. we'll talk about today's developments, where we are, where we could be. the fox all-stars when we return.

♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, children laughing ] move to the country, d live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. speaker boehner was at the white house for a christmas party. the two of you didn't speak. what is it going to take to get the two of you in a room to hash this out? >> speaker bane been a and i speak frequently.

i don't -- speaker boehner and i speak frequently. the issue doesn't have to sit in a room. the issue that is relevant is the acknowledgment if we are going to raise revenues, that is sufficient to balance with the cuff cuts that we have made and further reform and entitlement i am prepared to make, that we are going to have to see the rates on the top 2%. go up. and we are not going to be able to get a deal without it. >> getting in to that room and hammering out the deal doesn't seem like it's happening anytime soon. there may be talking behind the scenes. as far as the big players it doesn't mean to be a lot of movement on the fiscal cliff. here is what the senate minority leader had to say. >> i hope at some point here the president will understand that there will be no solution to this. i remind people that there is only one person out of 307 million americans who can

sign something in law. that is the president. only one person can support a deal he makes. that is the president. >> tucker carlson. nina easton and charles krauthammer. welcome back. what do you think? >> one thing that we learned about the white house is it's very good at raw political maneuvering. this dates back to obamacare. where it changed the rules in the senate to squeeze that through. this white house knows taxing the rich is popular position about they know making difficult decisions like changing medicare to raise the age for example to lower the cost of medicare needs to be

done is a very unpopular decision. they know that if a decision, if they don't come to a grand bargain, republicans are going to be blamed. so they have every interest in dragging this out and beating republicans over the head, over and over, while republicans by the way, have made some concessions. and are being beaten up by their own conservatives to the right. >> bret: are you seeing anything change? >> conservatives in leadership, republicans in leadership take heat from the base for southern. the president makes the case he has campaigned on raising taxes. and he won. keep in mind the republican leadership campaigned against raising taxes and they won. so their are beholden to their voters as well. i don't think the president wants to go over the fiscal cliff. he has his eyes focused on the legacy. he faces no pressure from the left. they're satisfied with him. let's be real.

he has concessions from the republicans. this is ideological debate. the president says we want the rates to rise. not money. he's hung up on the way that that money is raised. raising the rates. this is an ideological case he is making. "b," i think the republicans a little chicken might work. he has a lot to lose. i do not think he wants to go over the cliff. they claim he does and reckless, but he doesn't. they can push him harder on this. >> bret: you think a delay until the time week and suddenly the president is going to relent on rates? >> no, he is going to relent on spending. keep in mind, the republicans have come in awful -- i'm not being reflexive defender of the republican leadership, trust me. but they have come a long way. $800 billion in tax increase? i don't care what they call them. these are tax increases. they are offending their base. white house has not one offer to curtail the entitlement in any way. drivers of the debt and deficit. they need to ring something out of the white house on that side of the equation.

>> one thing to understand, when we hear the president say rates have to go up. there is no other way to make this work. this is a purely political statement, it has nothing to do with economics. his own commission, the debt reduction commission he pinted identified $1.1 trillion of what are called the tax expenditures. meaning loopholes and deductions out there. available every year. so over a decade that is $11 trillion of available revenues without raising rates. so all you need to do is get less than one in ten of the dollars. one in ten. you've got a $1 trillion in raised revenues without raising rates. the only reason the president insists on raising rates is because he knows it will destroy the republican unity. it will cause a complete fracture of the republican majority in the house. it will hand him a congress that he can then manipulate for the next two years at

least. because the republicans will be neutered. this is entirely political action, way to get a surrender from the republicans. and then what what will happen if he succeeds with this, with the fiction that you have to raise rates, rather than eliminate loopholes, is you will have a weakened republicans allowing him to dictate all the terms of whatever entitlement or other reforms if any we will get in the second term. >> bret: what about the specifics? listen, hypocrisy goes both ways, both parties. ton of it. we have point it out on the panel and run the sound bites. the president today in interview with bloomberg said one of the concerns about the deduction and capping the loopholes, closing them is that boehner's proposal to limit deductions is unrealistic because charitable deductions, possibly could be affected. that might affect hospitals. it might affect not for profit agencies across the country. on the verge of collapse.

back in march of 2009 he trade is very little evidence that doing anything to charitable deductions has significant impact on charity at all. that is when he was talking about obamacare. raising money for that. >> he also said that raising taxes on the top 2 is going to hurt the economy. we raise taxes whether you are limiting deductions or you are raising taxes on the wealthy, the wealthy are the prime givers. of philanthropy. the numbers are huge of giving. so you are going to do that no matter what. it's interesting that he is starting now to parse the, like the deductions that you do on a cap and deductions you don't want to cap. suggesting possibly he is willing to talk about this a bit. but i go back, i agree and i think where charles was going. i think he is willing not to have an agreement on january 1. the whole thing collapse and come back with a stronger

negotiating -- feeling like he is in a stronger negotiating position. i don't think it's leakily but possible -- likely but it's possible. >> bret: knowing what you know what is capable for the federal government to do, to withhold some of the bad things that could happen, what is the market do, what does the world economy do if that happens? >> the market, it tanks for a while. but to go in to a recession, this is a lengthy process. it's not going to suddenly go in to a recession. i think you will have bad days in the market. at the end of the day, ultimately come with a new conversation come to bargain things will rebound. >> cbo gamed this out and project if we were to go over the cliff we'd go in a recession of some kind and unemployment would hike up to 9.2%-ish. they project in a couple of years four years down the road we'd be in better shape and

unemployment would be lower as a result of getting a little balance between, you know, in-flow and outlay. in the end, good thing for the economy to spend less and take in more money. slightly more balanced picture. >> bret: last word. >> not this way and not over a cliff. president is overestimating the strength he has on january 1 if we go over a cliff. the reason he will propose the tax cut for middle class. republicans who control the house under the constitution is in charge of the revenue bill will propose on day one, when the president is sworn in, house sworn in, in january. they should meet in emergency session and pass a bill recinding all the increase in taxes and restoring the bush tax cut for everybody. each has a bill and same argument. i don't imagine the president has upper hand in that. >> bret: next up, president george w. bush on immigration reform. this holiday, share everything.

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immigrants come with new skills and new ideas. they fill a critical gap in the labor market. they work hard for a chance for a better life. america can be a lawful society. and a welcoming society at the same time. >> bret: former president george w. bush talking about the importance for republicans to embrace immigration reform. it's a theme many republicans are talking about, including incoming senator ted cruz who talked about it this week in d.c. >> i think republicans need to remain a party that supports securing the border and stopping illegal immigration.

at the same time, welcomes and celebrates the legal immigrants, the essence of the conservative message should be we want a dynamic nation where anybody with nothing can achieve anything. >> bret: that was a speech well received. back with the panel. charles, your thoughts on all of this? >> well, the sentiments i think are noble. and they're correct. the problem is how do you translate it to policy? that is where i think the republicans really been hurt. they, you know, they, obama got over 70% of the hispanic vote. the hispanics should be natural consistency. any immigrant should be natural part of the con seventive party and it's not. the reason is the attitude to immigrant is a threshold issue. if a people has a sense the party doesn't like you, they won't listen to anything else. so that is the challenge.

it doesn't mean they have to embrace amnesty overnight. there is a case to be made for six or seven years. that the way the republicans ought to approach this is be very straight on illegal immigration. you build a fence and don't tell me you can't work. israelis built a fence and nobody gets through the fence. you build a fence and you stop illegal immigration or a river become asteriskal. an -- becomes a trickle. then the generosity of people say if this is the last cohort of illegal in the country, 12 million here, legalize them and give them amnesty and not citizenship and take away the shadow. americans will accept that. the only reason they reject it is they assume if you legalize the cohort here today we'll have a new cohort of 10 million here in a decade. so i think you have to combine them, be strict on both. but be generous and say once we shut the border we will be very generous and accepting of people who are here illegally.

>> bret: can republicans get there? >> i think the first rule of thumb for the party, republican party should be do no harm. i agree a lot of it is language. the republican party should be doing more to celebrate legal immigrants as president bush was doing. >> bret: marco rubio talks about that all the time. >> marco rubio talks about that. when it comes to, you know, illegal imgrants, the 12 million people here, it's important to remember that california with 55 delegates to -- electoral votes. sorry. actually used to be a red state. until there was an anti-immigrant backlash which led to prop 187, which banned illegal immigrants from health and education. that was ultimately overturned. from then on, that was a democratic state. i think that proposals like self-deportation, which hit home to families here even if you are here legally. the idea that your friends or

family might have to go home, wait in line, and maybe never come back, that hits home. i think that is viewed as a hostile act. you have to get past that. personally, i would like to go to the day of john mccain in 2007 and look for a pathway to citizenship. if that is too far for the party, then look at the things like to new kay bailey hutchison legislation, which would make a pathway for young immigrants. >> bret: tucker? >> actually, california voted for clinton before pete wilson got involved in the debate over whether illegal immigrants ought to have welfare benefits. democrat is a democratic state because it's state of immigrants for the reasons that charles mentioned. what is missing is not all immigrants are the same. many latin american countries send us immigrants that go on welfare. but does the united states need new numbers of the low skilled immigrants in a post

industrial economy? is that good for the united states? it's mindless to say all immigrants are good. they are not. some are, some aren't. like all days are good. some days are good, some days aren't. we need and the republican party ought to be courageous enough to draw a distinction between people who add to the sum total of the american economy, buy in the culture, who improve the country and those who don't. there is a difference. >> bret: where is the screen? >> well, the screen begins with a conversation about outcomes. why is it that immigrants with certain countries have not thrived and immigrants from other countries have thrived? no one will have the conversation. when the future of the country is at stake, it's worth taking a rational, non-passionate and by the way, nonpolitical look at outcomes. ask real questions. why is it? you're not attacking anybody. these are questions that we need to ask, because the country is at stake. >> what do you do about the 12 million people here? this guy works for a yard landscaping company. he's low skilled. we don't need him. this guy went to a community college, maybe he can -- how

do you deal with the people who are already here? that is the crux of the issue. >> bret: these are all very, very big questions with no time to talk about them. but we will talk about them again. that is it for the panel. stay tuned to see one difference between men and women. load your freight, with its foot-activated lift gate. but that's not all you'll see, cause c-max also beats prius v, with better mpg. say hi to the all-new 47 combined mpg c-max hybrid.

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